B-133833, JANUARY 14, 1958, 37 COMP. GEN. 467

B-133833: Jan 14, 1958

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FEDERAL-AID HIGHWAY PROGRAM - ELIGIBILITY OF PROGRAMS APPROVED PRIOR TO THE 1956 ACT BOND-FINANCED INTERSTATE HIGHWAY PROJECTS WHICH WERE AUTHORIZED BY SECTION 5 OF THE FEDERAL-AID HIGHWAY ACT OF 1950 WHEN THE PRESCRIBED FEDERAL PRO RATA SHARE OF THE PROJECT COSTS WAS BASED ON A 50 PERCENT OR 60 PERCENT FORMULA AND WHICH WERE APPROVED PRIOR TO THE ENACTMENT OF THE FEDERAL-AID HIGHWAY ACT OF 1956. ARE ELIGIBLE FOR REIMBURSEMENT FOR BOND RETIREMENT FROM THE FUNDS AUTHORIZED IN THE 1956 ACT. THE COST OF COMPLETION FORMULA FOR FUTURE APPORTIONMENTS IN SECTION 108 (D) ARE NOT FOR APPLICATION TO BOND-FINANCED INTERSTATE HIGHWAY PROJECTS WHICH WERE AUTHORIZED BY SECTION 5 OF THE FEDERAL-AID HIGHWAY ACT OF 1950 AND APPROVED PRIOR TO THE ENACTMENT OF THE 1956 ACT NOR ARE THEY CONDITIONS PRECEDENT TO ELIGIBILITY FOR THE USE OF 1956 ACT FUNDS FOR REIMBURSEMENT OF SUCH PRIOR APPROVED PROJECTS.

B-133833, JANUARY 14, 1958, 37 COMP. GEN. 467

FEDERAL-AID HIGHWAY PROGRAM - ELIGIBILITY OF PROGRAMS APPROVED PRIOR TO THE 1956 ACT BOND-FINANCED INTERSTATE HIGHWAY PROJECTS WHICH WERE AUTHORIZED BY SECTION 5 OF THE FEDERAL-AID HIGHWAY ACT OF 1950 WHEN THE PRESCRIBED FEDERAL PRO RATA SHARE OF THE PROJECT COSTS WAS BASED ON A 50 PERCENT OR 60 PERCENT FORMULA AND WHICH WERE APPROVED PRIOR TO THE ENACTMENT OF THE FEDERAL-AID HIGHWAY ACT OF 1956, WHICH INCREASED THE FEDERAL PRO RATA SHARE TO 90 PERCENT, ARE ELIGIBLE FOR REIMBURSEMENT FOR BOND RETIREMENT FROM THE FUNDS AUTHORIZED IN THE 1956 ACT, BUT ONLY TO THE EXTENT OF THE PRO RATA BASIS IN EFFECT AT THE TIME OF THE APPROVAL OF THE PROJECT AGREEMENTS, IN VIEW OF THE LEGISLATIVE HISTORY OF THE 1956 ACT WHICH INDICATES A CONGRESSIONAL INTENT TO LIMIT THE INCREASED FEDERAL BENEFITS TO PROJECTS APPROVED AFTER THE 1956 ACT. THE CONSTRUCTION STANDARDS ADOPTED UNDER SECTION 108 (I) OF THE FEDERAL- AID HIGHWAY ACT OF 1956, THE WAGE RATE DETERMINATION REQUIREMENTS IN SECTION 115, AND THE COST OF COMPLETION FORMULA FOR FUTURE APPORTIONMENTS IN SECTION 108 (D) ARE NOT FOR APPLICATION TO BOND-FINANCED INTERSTATE HIGHWAY PROJECTS WHICH WERE AUTHORIZED BY SECTION 5 OF THE FEDERAL-AID HIGHWAY ACT OF 1950 AND APPROVED PRIOR TO THE ENACTMENT OF THE 1956 ACT NOR ARE THEY CONDITIONS PRECEDENT TO ELIGIBILITY FOR THE USE OF 1956 ACT FUNDS FOR REIMBURSEMENT OF SUCH PRIOR APPROVED PROJECTS.

TO THE SECRETARY OF COMMERCE, JANUARY 14, 1958:

ON SEPTEMBER 17, 1957, THE ASSISTANT SECRETARY FOR ADMINISTRATION SUBMITTED FOR OUR DECISION SEVERAL QUESTIONS RAISED BY THE BUREAU OF PUBLIC ROADS CONCERNING THE USE OF INTERSTATE HIGHWAY FUNDS AUTHORIZED BY SECTION 108 (B) OF THE FEDERAL-AID HIGHWAY ACT OF 1956, 70 STAT. 374, 378, 23 U.S.C. 158 (B), TO REIMBURSE THE STATES IN THE RETIREMENT OF ANNUAL MATURITIES OF BONDS IN CONNECTION WITH BOND-FINANCED HIGHWAY PROJECTS AUTHORIZED UNDER SECTION 5 OF THE FEDERAL-AID HIGHWAY ACT OF 1950, 64 STAT. 785, 788, 23 U.S.C. 21E.

SECTION 5 OF THE FEDERAL-AID HIGHWAY ACT OF 1950, READS AS FOLLOWS:

SEC. 5 ANY STATE, COUNTY, CITY, OR OTHER POLITICAL SUBDIVISION THAT SHALL ISSUE BONDS AND USE THE PROCEEDS OF SUCH BONDS FOR THE CONSTRUCTION OF TOLL-FREE FACILITIES IN ORDER TO ACCELERATE THE IMPROVEMENT OF THE NATIONAL SYSTEM OF INTERSTATE HIGHWAYS, THE FEDERAL AID PRIMARY HIGHWAY SYSTEM OR THE FEDERAL-AID HIGHWAY SYSTEM IN URBAN AREAS, MAY APPLY ANY PORTION OF THE FUNDS HEREIN, OR HEREAFTER, AUTHORIZED FOR EXPENDITURE ON SAID SYSTEMS OF HIGHWAYS AND APPORTIONED TO SUCH STATE UNDER THE PROVISIONS OF SECTION 1 TO AID IN RETIREMENT OF ANNUAL MATURITIES OF THE PRINCIPAL INDEBTEDNESS OF SUCH BONDS TO THE EXTENT THAT THE PROCEEDS OF SUCH BONDS ARE ACTUALLY EXPENDED IN THE CONSTRUCTION OF SAID SYSTEMS OF HIGHWAYS: PROVIDED, THAT PAYMENT OF FEDERAL FUNDS ON THE PRINCIPAL INDEBTEDNESS OF SUCH BONDS SHALL BE MADE ONLY ON ACCOUNT OF ANY SUCH SUCH FACILITY THAT IS CONSTRUCTED IN ACCORDANCE WITH PLANS AND SPECIFICATIONS APPROVED IN ADVANCE OF CONSTRUCTION BY THE COMMISSIONER OF PUBLIC ROADS: PROVIDED FURTHER, THAT PAYMENT OF FEDERAL FUNDS PURSUANT TO THIS SECTION SHALL NOT EXCEED THE PRO RATA BASIS AUTHORIZED BY SECTION 1: AND PROVIDED FURTHER, THAT PAYMENTS TO ANY STATE PURSUANT TO THIS SECTION SHALL BE MADE EXCLUSIVELY FROM APPORTIONMENTS TO SUCH STATE FROM FUNDS AUTHORIZED BY THE CONGRESS TO BE APPORTIONED FOR EXPENDITURE ON SAID SYSTEMS OF HIGHWAYS AND THIS SECTION SHALL NOT BE CONSTRUED AS A COMMITMENT OR OBLIGATION ON THE PART OF THE UNITED STATES TO PROVIDE SUCH FUNDS.

THE FACTS RELATED IN THE LETTER DISCLOSE THAT PRIOR TO ENACTMENT OF THE CITED FEDERAL-AID HIGHWAY ACT OF 1956, 23 U.S.C. 151 NOTE, THE BUREAU OF PUBLIC ROADS ENTERED INTO AGREEMENTS WITH CERTAIN STATES FOR CONSTRUCTION OF BOND-FINANCED PROJECTS ON THE FEDERAL-AID PRIMARY AND URBAN ROAD SYSTEMS, INCLUDING THE INTERSTATE ROAD SYSTEM. THESE AGREEMENTS PROVIDED IN SUBSTANCE, IN ACCORDANCE WITH THE PROVISIONS OF THE QUOTED SECTION 5 AND THE BUREAU'S REGULATIONS THEREON, A COPY OF WHICH WAS TRANSMITTED WITH THE LETTER OF SEPTEMBER 17, FOR CONSTRUCTION OF THE FACILITIES APPROVED IN ADVANCE BY THE BUREAU, AND FOR PAYMENT OF THE FEDERAL PRO RATA SHARE OF THE PROJECT COST IN THE AMOUNT AUTHORIZED BY THE LAW THEN IN EFFECT WHICH, UNDER THE FEDERAL-AID HIGHWAY ACT OF 1954, 68 STAT. 71, 72, 23 U.S.C. 21A, WAS NOT TO EXCEED 50 PERCENT IF FINANCED WITH FEDERAL-AID PRIMARY OR URBAN FUNDS AND 60 PERCENT IF FINANCED WITH INTERSTATE FUNDS, SUBJECT TO CERTAIN QUALIFICATIONS NOT PERTINENT HERE. THE AGREEMENTS ALSO CONTAINED A PROVISION TO THE EFFECT THAT THE EXECUTION THEREOF DID NOT OF ITSELF OPERATE TO CREATE AN OBLIGATION AGAINST THE STATE'S APPORTIONED FEDERAL- AID FUNDS THEN AVAILABLE FOR OBLIGATION, BUT THAT PAYMENT OF THE FEDERAL PRO RATA SHARE WOULD BE MADE AS OF THE TIME OF THE MATURITY IN WHOLE OR PART OF THE BONDS ISSUED TO FINANCE THE PROJECT FROM FUTURE FEDERAL FUNDS APPORTIONED AND AVAILABLE TO THE STATE.

THE ASSISTANT SECRETARY POINTS OUT THAT UNDER THE FEDERAL-AID HIGHWAY ACT OF 1956, THE FEDERAL PRO RATA FOR PROJECTS FINANCED WITH PRIMARY OR URBAN FUNDS REMAINS UNCHANGED, BUT THAT SECTION 108 (E), 23 U.S.C. 158 (E), OF THE ACT INCREASES THE FEDERAL SHARE PAYABLE FOR PROJECTS FINANCED WITH INTERSTATE SYSTEM FUNDS AUTHORIZED IN SECTION 108 (B) TO 90 PERCENT. ALSO, HE REFERS TO OTHER NEW PROVISIONS IN THE HIGHWAY LEGISLATION PERTAINING TO INTERSTATE PROJECTS, NAMELY, SECTION 108 (D), 23 U.S.C. 158 (D), WHICH PROVIDES A CHANGE IN THE APPORTIONMENT FORMULA BEGINNING WITH THE FISCAL YEAR 1960; SECTION 108 (I), 23 U.S.C. 158 (I), WHICH REQUIRES THAT INTERSTATE PROJECTS MEET CERTAIN CONSTRUCTION STANDARDS; AND SECTION 115, 23 U.S.C. 166, WHICH ADOPTS THE PREVAILING WAGE PRINCIPLE OF THE DAVIS-BACON ACT, 40 U.S.C. 276A, AS ONE OF THE CONDITIONS GOVERNING FINANCING AND CONSTRUCTION OF THE INTERSTATE SYSTEM.

IN SUMMARIZING, THE ASSISTANT SECRETARY REFERS TO THE SECOND PROVISO OF SECTION 5 WHICH LIMITS FEDERAL PAYMENTS TO NOT TO EXCEED THE PRO RATA BASIS AUTHORIZED BY SECTION 1 OF THE 1950 ACT, 64 STAT. 785, AND SAYS THAT THE LATTER SECTION DOES NOT PRESCRIBE ANY PRO RATA. IN VIEW THEREOF, AND OF THE PROVISIONS OF SECTION 5 AUTHORIZING THE APPLICATION OF FUTURE FEDERAL-AID AUTHORIZATIONS TO REIMBURSE STATES FOR BOND FINANCED PROJECTS, HE SUGGESTS THAT THE CONGRESS INTENDED THE FEDERAL PRO RATA REIMBURSEMENT TO THE STATES WOULD BE THAT APPLICABLE TO THE PARTICULAR CLASS OF FEDERAL- AID AUTHORIZATIONS USED FOR SUCH PURPOSES.

THE SPECIFIC QUESTIONS ON WHICH OUR DECISION IS REQUESTED ARE STATED IN THE LETTER AS FOLLOWS:

1. ARE THE INTERSTATE FUNDS AUTHORIZED UNDER SECTION 108 (B) OF THE FEDERAL-AID HIGHWAY ACT OF 1956, WHEN AVAILABLE, CONSIDERED ELIGIBLE, UNDER ANY CIRCUMSTANCES, TO PAY THE FEDERAL SHARE OF INTERSTATE SYSTEM BOND-FINANCED PROJECTS, FOR WHICH PLANS AND SPECIFICATIONS WERE APPROVED BY THE BUREAU OF PUBLIC ROADS AND FOR WHICH PROJECT AGREEMENTS WERE ENTERED INTO, PURSUANT TO SECTION 5 OF THE FEDERAL-AID HIGHWAY ACT OF 1950, PRIOR TO ENACTMENT OF THE 1956 ACT, PROVIDED THE PROJECT HAS NOT BEEN CLOSED OUT BY FINAL FEDERAL PAYMENT? IF SO,

(A) MAY THE AMOUNT OF THE FEDERAL SHARE PAYABLE WITH RESPECT TO FUTURE PAYMENTS ON SUCH PROJECTS BE INCREASED TO 90 PERCENT UNDER THE PROVISIONS OF SECTION 108 (E) OF THE 1956 ACT?

(B) WOULD SUCH ELIGIBILITY BE DEPENDENT UPON SUCH PROJECTS MEETING THE STANDARDS ADOPTED UNDER SECTION 108 (I) OF THE 1956 ACT? ( IT WOULD NOT BE POSSIBLE TO MEET THE REQUIREMENTS OF SECTION 115 RELATING TO WAGE RATE DETERMINATIONS SINCE CONTRACTS FOR THE PROJECTS IN QUESTION HAVE ALREADY BEEN LET BY THE STATES.)

(C) WOULD SUCH ELIGIBILITY BE DEPENDENT UPON HAVING THE DOLLAR AMOUNT OF ESTIMATED FUTURE FEDERAL PAYMENTS ON ACCOUNT OF SUCH PROJECTS INCLUDED IN THE ESTIMATES OF COST USED IN THE APPORTIONMENT OF INTEREST FUNDS UNDER SECTION 108 (D) OF THE 1956 ACT?

SECTION 5 OF THE FEDERAL-AID HIGHWAY ACT OF 1950 QUOTED ABOVE WAS DESIGNED TO ENCOURAGE A GENERAL ACCELERATION OF ROAD CONSTRUCTION ON THE FEDERAL-AID HIGHWAY SYSTEMS, INCLUDING THE INTERSTATE SYSTEM. CONTEMPLATED THAT THE STATES WHICH HAD LARGELY OBLIGATED THE FEDERAL AID HIGHWAY FUNDS APPORTIONED TO THEM WOULD BE ENABLED TO CONTINUE WITH HIGHWAY BUILDING THROUGH THE USE OF BOND FINANCING. REIMBURSEMENT TO THE STATES FOR THE PRINCIPAL OF BOND PROCEEDS SO USED WAS AUTHORIZED TO BE MADE FROM FUTURE FEDERAL-AID HIGHWAY FUNDS APPORTIONED AND AVAILABLE TO THE STATES AT THE TIME OF RETIREMENT OF THE BONDS IN AN AMOUNT NOT TO EXCEED THE PRO RATA BASIS AUTHORIZED BY SECTION 1 OF THE ACT. THE RESPONSIBILITY OF THE UNITED STATES FOR REIMBURSEMENT ON ACCOUNT OF SUCH CONSTRUCTION WAS CONDITIONED UPON THE FUTURE AVAILABILITY OF FEDERAL-AID FUNDS.

AS STATED IN THE LETTER, SECTION 1 OF THE 1950 ACT DOES NOT SPECIFICALLY PRESCRIBE ANY PRO RATA BASIS FOR THE FEDERAL PAYMENT CONTEMPLATED UNDER THE PROVISIONS OF SAID SECTION 5. HOWEVER, WE OBSERVE THAT SECTION 1 DOES REFER TO THE FEDERAL-AID HIGHWAY ACT OF 1944, 58 STAT. 838, 23 U.S.C. 61 NOTE; THAT SECTION 5 (A) AT PAGE 840 OF THE LATTER STATUTE PRESCRIBES A 50 PERCENT FEDERAL MATCHING BASIS FOR FEDERAL-AID PROJECTS SUCH AS ARE HERE INVOLVED; AND, THAT SECTION 15 OF THE 1950 ACT, 64 STAT. 791, CONTINUES IN FULL FORCE AND EFFECT ALL PROVISIONS OF THE EARLIER ACT NOT INCONSISTENT THEREWITH.

IT IS CLEAR THAT THE CONGRESS INTENDED, BY USE OF THE PROVISO IN SECTION 5 OF THE 1950 ACT " THAT PAYMENT OF FEDERAL FUNDS PURSUANT TO THIS SECTION SHALL NOT EXCEED THE PRO RATA BASIS AUTHORIZED BY SECTION 1," THE ADOPTION OF THE THEN CURRENT MATCHING FORMULA AS THE BASIS FOR REIMBURSING STATES FOR BOND-FINANCED HIGHWAY CONSTRUCTION FROM ANY LATER FEDERAL-AID HIGHWAY FUNDS PROVIDED TO THE STATES. IT THUS BECOMES NECESSARY TO APPLY THE RULE THAT THE ADOPTION OF AN EARLIER STATUTE BY REFERENCE MAKES IT AS MUCH A PART OF THE LATER ACT AS THOUGH IT HAD BEEN INCORPORATED AT FULL LENGTH, AND BRINGS IN ALL THAT IS FAIRLY COVERED BY THE REFERENCE. ENGEL V. DAVENPORT, 271 U.S. 33.

FOLLOWING THE FEDERAL-AID HIGHWAY ACT OF 1950 THE REFERRED-TO FEDERAL-AID HIGHWAY ACTS OF 1954 AND 1956 WERE ENACTED, BOTH OF WHICH ACTS PROVIDED INCREASES IN THE FEDERAL SHARE PAYABLE TO THE STATES FOR PROJECTS CONSTRUCTED ON THE INTERSTATE SYSTEM. SECTION 2 (A) OF THE 1954 ACT, 68 STAT. 72, PROVIDED " THAT THE FEDERAL SHARE PAYABLE ON ACCOUNT OF ANY PROJECT ON THE NATIONAL SYSTEM OF INTERSTATE HIGHWAYS PROVIDED FOR BY FUNDS MADE AVAILABLE UNDER THE PROVISIONS OF THIS SECTION SHALL BE INCREASED TO 60 PERCENTUM OF THE TOTAL COST THEREOF * * *.' AND THE LANGUAGE OF SECTION 108 (E) OF THE 1956 ACT, 70 STAT. 379, IS THAT " THE FEDERAL SHARE PAYABLE ON ACCOUNT OF ANY PROJECT ON THE INTERSTATE SYSTEM PROVIDED FOR BY FUNDS MADE AVAILABLE UNDER THE PROVISIONS OF THIS SECTION SHALL BE INCREASED TO 90 PERCENTUM OF THE TOTAL COST THEREOF * * *.'

THE ONLY LANGUAGE THAT POSSIBLY MAY BE REGARDED AS GIVING SECTION 108 (E) OF THE FEDERAL-AID HIGHWAY ACT OF 1956 THE EFFECT OF APPLYING THE 90 PERCENT FEDERAL PAYMENT PROVISION THEREIN TO THE RETIREMENT OF BOND- FINANCED PROJECTS ON THE INTERSTATE SYSTEM, WHICH PROJECTS WERE THE SUBJECT OF AGREEMENTS EXECUTED WHEN THE LEGAL FEDERAL SHARE PAYABLE WAS EITHER 50 OR 60 PERCENT, APPEARS IN THE TERM "SHALL BE INCREASED TO 90 PERCENTUM.' THIS PHRASE, HOWEVER, WHEN CONSIDERED TOGETHER WITH THE OTHER LANGUAGE OF THE SECTION CLEARLY INDICATES THAT WHILE THE 90 PERCENT FEDERAL PAYMENT SUPERSEDES THE PRIOR FEDERAL PRO RATA, IT WAS INTENDED TO APPLY ONLY TO INTERSTATE SYSTEM PROJECTS PROVIDED FOR BY THE FUNDS MADE AVAILABLE UNDER THE PROVISIONS OF THE SECTION AS AMENDED, AND NOT TO AFFECT PROJECTS PREVIOUSLY CONSUMMATED OR FINALLY AGREED UPON UNDER EARLIER STATUTORY AUTHORITY.

IN THIS CONNECTION, WE HAVE CONSIDERED THE DECISION, 25 COMP. DEC. 718, CITED IN THE LETTER AS BEING PERTINENT HERE. THAT CASE INVOLVED AN AMENDATORY STATUTE THAT HAD THE EFFECT OF REPEALING THE PAYMENT PROVISIONS OF AN EARLIER ACT. THE CONCLUSION EXPRESSED THEREIN TO THE EFFECT THAT THE INCREASED AMOUNT OF PAYMENT PROVIDED FOR BY THE AMENDATORY STATUTE WAS APPLICABLE IN THE SETTLEMENT FOR ROAD CONSTRUCTION ON WHICH THE GOVERNMENT HAD NOT MADE FINAL PAYMENT IS NOT REGARDED AS APPLICABLE TO THE SITUATION UNDER CONSIDERATION.

MOREOVER, IT IS CLEAR THAT THE REFERRED-TO FEDERAL-AID HIGHWAY ACTS, IN AUTHORIZING APPORTIONMENTS OF FUNDS FOR USE ON THE FEDERAL-AID HIGHWAY SYSTEMS AND PROVIDING DIFFERENT FEDERAL MATCHING ARRANGEMENTS FOR PROJECTS, ON THE INTERSTATE SYSTEM, MUST EACH BE GIVEN EFFECT SO FAR AS PROJECTS FINALLY AGREED UPON UNDER THEIR AUTHORITY IN ACCORDANCE WITH THE PROVISIONS IN EFFECT AT THE TIME THE AGREEMENTS WERE REACHED. IN HOUSE CONFERENCE REPORT NO. 2436, ON THE BILL THAT BECAME THE FEDERAL-AID HIGHWAY ACT OF 1956, THE FOLLOWING COMMENT APPEARS AT PAGE 30:

* * * THE CONFEREES TOOK NOTE OF THE FACT THAT SOME STATES HAVE NOT YET OBLIGATED ALL OF THE FUNDS PREVIOUSLY APPORTIONED TO THEM UNDER THE AUTHORIZATIONS CONTAINED IN THE FEDERAL-AID HIGHWAY ACT OF 1954, WHEREIN THE MATCHING RATIO IS 60-40 INSTEAD OF THE MORE LIBERAL 90-10 RATIO PROVIDED IN THE CONFERENCE AGREEMENT. IT IS INTENDED BY THE CONFEREES THAT THE SECRETARY OF COMMERCE WILL TAKE SUCH STEPS AS MAY BE NECESSARY TO INSURE THAT EACH STATE SHALL UTILIZE ALL 60-40 FUNDS APPORTIONED TO IT BEFORE THE LAPSE PERIOD AND THAT NO STATE WILL BE PERMITTED TO DELIBERATELY LAPSE ANY OF THE 60-40 FUNDS IN ORDER TO SUBSTITUTE THEREFOR THE MORE FAVORABLE 90-10 FUNDS AND THEREBY INCREASE THE TOTAL FEDERAL FUNDS GOING INTO ANY STATE FOR THE INTERSTATE SYSTEM.

THUS THE QUOTED STATEMENTS OF THE CONFEREES NEGATIVE ANY CONCEPT THAT THE STATES ARE TO BE ACCORDED ANY ADVANTAGES THROUGH SUBSTITUTION OR INTERCHANGE OF THE MORE LIBERAL FEDERAL PAYMENT PROVIDED FOR PROJECTS ON THE INTERSTATE SYSTEM AUTHORIZED AND FUNDED UNDER THE FEDERAL-AID HIGHWAY ACT OF 1956, AND THE PLAIN INTENT THEREOF APPEARS EQUALLY APPLICABLE IN THE USE OF SUCH FUNDS TO REIMBURSE THE STATES IN THE RETIREMENT OF BOND- FINANCED INTERSTATE SYSTEM PROJECTS.

THERE IS NO DOUBT THAT FUNDS AUTHORIZED TO BE APPROPRIATED BY SECTION 108 (B) OF THE 1956 ACT ARE AVAILABLE FOR EXPENDITURE ON THE SYSTEM OF HIGHWAYS WHICH WAS THE SUBJECT OF SECTION 5 OF THE 1950 ACT AND THAT THE FUNDS FOR EXPENDITURE ON SUCH HIGHWAYS ARE REQUIRED TO BE APPORTIONED AMONG THE STATES. THEREFORE, AND IN ACCORDANCE WITH SECTION 5 OF THE 1950 ACT, IN ANSWER TO QUESTION 1 AND PART (A) THEREOF, YOU ARE ADVISED THAT THE INTERSTATE SYSTEM FUNDS AUTHORIZED BY THE FEDERAL AID HIGHWAY ACT OF 1956 MAY BE REGARDED AS AVAILABLE, WITHIN THE LIMITS OF FUNDS APPORTIONED TO THE STATES, TO PAY THE FEDERAL SHARE OF INTERSTATE SYSTEM BOND-FINANCED PROJECTS FOR WHICH AGREEMENTS WERE EXECUTED AND APPROVED UNDER SECTION 5 OF THE 1950 ACT, PRIOR TO ENACTMENT OF THE 1956 ACT, PROVIDED THAT THE INTERSTATE SYSTEM FUNDS PREVIOUSLY APPORTIONED TO THE PERTINENT STATES UNDER THE AUTHORIZATIONS CONTAINED IN THE FEDERAL-AID HIGHWAY ACT OF 1954 WILL HAVE BEEN OBLIGATED PRIOR TO LAPSING AND THAT SUCH PAYMENTS DO NOT EXCEED IN AMOUNT THE LEGAL PRO RATA IN EFFECT AT THE TIME THE SAID AGREEMENTS WERE APPROVED.

NOTHING IS APPARENT IN THE FEDERAL-AID HIGHWAY ACT OF 1956 OR IN ITS LEGISLATIVE HISTORY TO ESTABLISH A LEGISLATIVE INTENT TO INCLUDE INTERSTATE SYSTEM PROJECTS, OTHER THAN AS PROVIDED FOR IN SECTION 108, 23 U.S.C. 158, AS BEING SUBJECT TO THE CONSTRUCTION STANDARDS ADOPTED UNDER SECTION 108 (I), THE WAGE RATE DETERMINATION REQUIREMENTS OF SECTION 155, OR THE COST OF COMPLETION FORMULA FOR FUTURE APPORTIONMENTS PROVIDED FOR IN SECTION 108 (D). THEREFORE, THESE STATUTORY PROVISIONS NEED NOT BE REGARDED AS APPLYING TO PRIOR TRANSACTIONS, OR AS CONDITIONS OF THE ELIGIBILITY AND USE OF THE INTERSTATE SYSTEM FUNDS AUTHORIZED THEREIN TO PAY THE FEDERAL SHARE OF STATE BOND-FINANCED PROJECTS ON THE INTERSTATE SYSTEM. PARTS (B) AND (C) OF THE QUESTION THEREFORE, ARE ANSWERED IN THE NEGATIVE. HOWEVER, OUR ANSWER TO QUESTION (C) IN NO WAY IS TO BE INTERPRETED AS PRECLUDING, IN ESTABLISHING THE COST OF COMPLETION OF THE INTERSTATE SYSTEM FOR APPORTIONMENT PURPOSES UNDER SECTION 108 (D) OF THE 1956 ACT, THE INCLUSION OF FUNDS SUFFICIENT TO LIQUIDATE THE ESTIMATED FUTURE FEDERAL PAYMENTS ON ACCOUNT OF SUCH BOND PROJECTS, THAT BEING A MATTER FOR ADMINISTRATIVE CONSIDERATION.